The Research On The Internal Management Of Chinese CPA Firms After Reform

This paper mainly analyzes the internal management problem of public accounting firmsafter the reform. This paper introduces the background and the process of the reform of publicaccounting firms at first; then, based on economics theories, such as complex rational manhypothesis, the principal-agent theory, enterprise theory and human capital theory; defines theenterprise nature of public accounting firms and the features of its internal management; figuresout problems appeared in the reform of public accounting firms, and tries to find out the reasonswho caused all these problems; in the end, combined the theoretical analysis and the experienceof four international public accounting firms, raises some specific measures for theimprovement of the internal management structure of public accounting firms in our country.As the starting point of the research, the first part of this paper will introduce thebackground and significance of topics, and the research methods of this paper.The second part of this paper will sum up previous research achievements as the Referenceof the paper.The third part of the paper is the theoretical basis, which provides the theoretical supportfor later discussion. It mainly involves complex man hypothesis, principal-agent theory,enterprise theory and human capital theory.The fourth part will discuss the nature and the features of internal management of publicaccounting firms.The fifth part will state and analyze the internal governance problems in public accountingfirms of our country after the reform. This paper mainly discusses this problem from fouraspects: equity structure, human resources issues, incentive mechanism and risk control.The sixth part will draw the largest four firms’ experience in order to put forward somesuggestions for CPA firm’s internal management in China.